Advanced Placement (AP)


A renowned fashion brand launches a line of evening wear while the economy is booming. How will this economic scenario influence sales?

2 Answer

  • Answer:

    This economic scenario will increase the sales for the fashion brand's line of evening wear.


    An economic boom occurs when the Gross Domestic Product (GDP) of a country increases. The GDP refers to the total or sum of all market values of products and services in a country for a particular time. The value measures the country's economic activity for that period.

    At this time, businesses are very interested in investing. They also increase their production, which, in turn, affects the income of families. Once the production increases, the sales also increases because families are able to afford the items or services.

    In the situation above, the fashion brand will most likely increase the sales because many people have the buying power for evening wears. People will be able to afford it because they have good income.  

  • Answer:

    Sales will increase


    If the economy is booming, people can afford to spend more on fashion, so sales will increase.